Can I get a citation for any of this? It was my understanding that the USDA allows cattle to be fed "cage lining" which is chicken feathers, poop and feed taken from the bottom of chicken cages. The chicken feed, in turn, contains cattle meat and trimmings, thus making your "side of scrapie" scenario a small but significant possibility.
In other words, what makes you think the USDA is not beholden to the commercial interests that it regulates, like every other government agency?